Collateral Types and Risk Parameters
Overview: Supported Collateral Types
Mynt (USDm) supports a carefully curated set of collateral types across Monad and MegaETH, each selected to ensure security, decentralization, and capital efficiency. The protocol enforces an isolated vault design, where each collateral type on each chain is siloed with its own risk parameters—minimizing contagion and enabling tailored collateral strategies.
At launch, supported collateral includes:
On Monad:
MON – Monad’s native token
aprMON – Liquid Staking Token from Apriori Labs
shMON – Liquid Staking Token from Shard Labs
On MegaETH:
ETH – The native token of Ethereum, deposited via the MegaETH chain (No other assets are accepted on MegaETH.)
Each asset is governed by custom parameters, including:
Loan-to-Value (LTV) ratios
Liquidation thresholds
Oracle feeds
Protocol-specific debt ceilings
This allows Mynt to offer capital-efficient minting while maintaining solvency and risk isolation across its multi-chain architecture.
3.1 MON (Monad Native Token)
Description: MON is the native asset of the Monad blockchain. It powers gas, validator staking, and serves as the core unit of value across Monad-native protocols.
Rationale for Inclusion: As the most liquid and widely used asset on Monad, MON forms the foundational collateral layer for USDm minting on Monad.
Risks: Prone to volatility and speculative swings, especially during early ecosystem growth phases. High correlation with Monad ecosystem performance.
3.2 aprMON (Apriori Staked MON)
Description: aprMON is a Liquid Staking Token issued by Apriori Labs, representing MON staked with validators while preserving liquidity and DeFi composability.
Rationale for Inclusion: Offers a yield-bearing, staked variant of MON suitable for low-friction integrations with DeFi. Backed by a decentralized validator set.
Risks: Subject to smart contract risk, potential depeg of derivative, and validator slashing.
Integration Reference: Apriori Integration Docs
3.3 shMON (Shard Labs Liquid Staked MON)
Description: shMON is a Liquid Staking Token provided by Shard Labs, representing staked MON with validators optimized for DeFi usage.
Rationale for Inclusion: Offers deep liquidity, strong ecosystem alignment, and growing adoption across Monad-native protocols.
Risks: Exposed to smart contract vulnerabilities, validator failure, and derivative pricing discrepancies in secondary markets.
Reference: shMON Listing Guidelines
3.4 ETH (MegaETH-native Collateral)
Description: ETH is the native asset of Ethereum and is the only accepted collateral type for minting USDm on MegaETH.
Rationale for Inclusion: ETH offers unparalleled liquidity, stability, and decentralization. By isolating MegaETH vaults to ETH-only deposits, the protocol ensures consistent valuation and minimal risk.
Risks: ETH is still a volatile asset and subject to systemic shocks across Ethereum. While less correlated with Monad-specific risks, sudden market corrections could still affect vault health.
Chain-Specific Note: All ETH-based minting occurs on MegaETH. ETH is not accepted on Monad-based vaults.
Future Collateral Expansion
Future iterations of the protocol may support additional collateral types pending governance approval and rigorous risk reviews. These may include:
LP Tokens from Monad-native AMMs (e.g., MON/USDm pools)
Yield-bearing vault tokens (e.g., auto-compounding derivatives)
Cross-chain assets bridged securely to Monad
ETH-staked derivatives (e.g., Lido stETH) on MegaETH
Each new collateral type will undergo:
Technical integration audits
Oracle feed validation
Risk framework modeling (e.g., slippage tests, drawdown analysis)
Governance approval before activation
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